Dunedin has announced the sale of Kee Safety, a global supplier of safety solutions and products designed to protect people from hazards, to Investcorp. The sale, which is subject to completion, values the company at £280 million and will provide a full exit for Dunedin’s Buyout Fund III, which will make a return of 3 times money invested and an IRR of 35 per cent.
This exit maintains Dunedin’s current high level of transactional activity coming just one week after the successful IPO of Alpha Financial Markets and soon after the August sale of Blackrock Expert Services. As a result, Dunedin will be able to generate a total cash return of £230 million for its investors within three months.
Dunedin Buyout Fund III closed at its hard cap of £300m in July 2013 and since then has completed seven investments, four exits and fifteen portfolio acquisitions.
Kee Safety exemplifies Dunedin’s ability to find niche UK businesses and help them to compete on a global stage. Since Dunedin acquired Kee Safety in 2013, the company has made twelve acquisitions and has increased its geographic footprint via further expansion into Europe, North America, Asia and the Middle East. Revenues have more than have doubled since 2013 to a current level of £78 million.
Headquartered in Birmingham, Kee Safety employs 480 people and sells its products in over 60 countries. Customers range from multi-national corporations to major contractors, distributors and installers. Its products include fall prevention equipment, roof edge protection, barrier and guardrail systems and safe access solutions.
Nicol Fraser, Partner of Dunedin commented: “Kee Safety is a fantastic business that has achieved very significant growth. International expansion and an active acquisition strategy have been important parts of that growth and it is to the great credit of the management team that so much has been achieved over the last four years. There is a long runway in front of Kee Safety in terms of further growth potential, particularly as the business expands its international presence and we wish the team the very best for the exciting future that lies ahead.”
He added: “Over the last four years, the team at Dunedin has focused on accelerating the growth of our investee companies through internationalisation and buy and build strategies. That focus and hard work has paid off in the last three months as we have successfully exited three businesses in quick succession and returned £230 million to our investors.”
Chris Milburn, Chairman of Kee Safety commented: “Dunedin has been a highly supportive investor and partner over the last four years. As a management team, we knew what we wanted to achieve and we looked for an investor who would really take the time to understand those objectives and go the extra mile in supporting us to meet them. That has very much proved to be the case, as the growth of the business shows; and we now look forward to working with Investcorp as Kee Safety embarks on its next stage of development.”
Sell side advisers were Rothschild for corporate finance and Gateley plc for legal.